Which of the following is NOT an advantage of using a lump-sum fee?

Using a lump-sum fee structure provides several advantages that facilitate project management and financial planning. Predictability in budgeting is a key benefit, as clients know the total cost upfront, allowing for better financial planning and resource allocation. A clear scope of work is also a significant advantage; since the fee is tied to specific deliverables, it helps ensure that both parties have a mutual understanding of what is to be completed, reducing the potential for scope creep.

Ease of administration further enhances the benefits of a lump-sum fee arrangement. This type of contract simplifies billing processes because clients are charged a single, agreed-upon amount rather than managing multiple invoices or tracking costs on a time-plus-expenses basis.

In contrast, flexibility in project changes is not typically associated with a lump-sum fee. This fee structure often locks both the client and the contractor into the agreed terms, which can make accommodating changes more challenging. When modifications are necessary, they usually require renegotiation, which can lead to complications or delays. This lack of flexibility can be a disadvantage in dynamic projects where changes may be more prevalent. Thus, it highlights the unique standing of flexibility as not being an advantage of the lump-sum fee.